Monday, September 27, 2004

494 House by the side of the road

Every morning this past summer on my way to the coffee shop near Lake Erie, I passed a 1950s ranch along the side of the road. It looked like the typical 3 bedroom, 1 car garage, big picture window in the living room I remember from my youth--a "modern" house. It was sitting on a truck bed waiting for a foundation. Then a second ranch, maybe from the 60s, moved in next to it, sitting on supports for weeks. The owners of the lots who had moved them there to catch the summer renters, probably lost a prime $1200-$1500 a week from fishermen or vacationers anxious to enjoy the lake.

Cement shortage, I wondered? We import cement from China (takes 44 days), but impose high import duties for cement from Mexico (takes only 4 days), probably to protect American companies. This is hurting our housing industry and will impede the rebuilding in Florida which has just been through four hurricanes, tornadoes, and flooding. I'd like the USA to give Mexico all the help it can in free trade or trade concessions, so Mexican workers can stop risking their lives by coming here illegally.

Of course, it's much more complicated that that as this Houston Chronicle article shows: "Cemex, the world's third-largest cement company, acknowledges that Mexican prices are high compared to many other markets, and only slightly cheaper than in the United States. But company officials blame expensive energy, labor, transport, distribution and regulatory costs in Mexico, and the absence of government subsidies given to many foreign producers."

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